NYSE:UVV

Stock Analysis Report

Executive Summary

Universal Corporation engages in the supply of leaf tobacco products worldwide.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.

Risks

  • Universal is not covered by any analysts.

Similar Companies

Share Price & News

How has Universal's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.6%

NYSE:UVV

-5.8%

US Tobacco

1.1%

US Market


1 Year Return

-11.4%

NYSE:UVV

-33.4%

US Tobacco

2.1%

US Market

UVV outperformed the Tobacco industry which returned -32% over the past year.

UVV underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

UVVIndustryMarket
7 Day6.6%-5.8%1.1%
30 Day8.6%-10.7%3.7%
90 Day-3.5%-17.5%2.3%
1 Year-6.8%-11.4%-28.9%-33.4%4.4%2.1%
3 Year15.4%1.7%-22.7%-33.1%47.0%37.4%
5 Year51.5%22.9%14.6%-8.3%61.6%43.8%

Price Volatility Vs. Market

How volatile is Universal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Universal undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Universal's share price is below the future cash flow value, and at a moderate discount (> 20%).

Universal's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Universal is overvalued based on earnings compared to the Global Tobacco industry average.

Universal is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Universal, we can't assess if its growth is good value.


Price Based on Value of Assets

Universal is good value based on assets compared to the US Tobacco industry average.


Next Steps

Future Growth

How is Universal expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Universal is high growth as no revenue estimate data is available.

Universal's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Universal's revenue growth to the United States of America market average as no estimate data is available.

Universal's earnings growth is expected to exceed the United States of America market average.

Universal's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Universal will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Universal performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Universal's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Universal's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Universal's 1-year earnings growth is negative, it can't be compared to the Global Tobacco industry average.


Return on Equity

Universal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Universal used its assets less efficiently than the Global Tobacco industry average last year based on Return on Assets.


Return on Capital Employed

Universal has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Universal's financial position?


Financial Position Analysis

Universal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Universal's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Universal's level of debt (32.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (40.3% vs 32.7% today).

Debt is well covered by operating cash flow (48.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.6x debt.


Next Steps

Dividend

What is Universal's current dividend yield, its reliability and sustainability?

5.33%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Universal before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Universal's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Universal's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Universal's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

George Freeman (56yo)

11.4yrs

Tenure

US$5,346,387

Compensation

Mr. George C. Freeman, III, has been Chairman of Universal Corporation since August 5, 2008. Mr. Freeman has been Chief Executive Officer of Universal Corporation since April 1, 2008. Mr. Freeman has been  ...


CEO Compensation Analysis

George's remuneration is higher than average for companies of similar size in United States of America.

George's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

7.9yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Universal management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.9yrs

Average Tenure

66yo

Average Age

The tenure for the Universal board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$296,22714 Jun 19
Theodore Broome
EntityIndividual
Role
Senior Key Executive
Executive VP & Sales Director of Universal Leaf Tobacco Company Inc
Shares5,000
Max PriceUS$59.25
SellUS$105,57312 Jun 19
James Huffman
EntityIndividual
Shares1,745
Max PriceUS$60.50
SellUS$106,32031 May 19
James Huffman
EntityIndividual
Shares1,862
Max PriceUS$57.10
SellUS$140,62331 May 19
Preston Wigner
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares2,500
Max PriceUS$56.25
SellUS$433,25306 Mar 19
Robert Peebles
EntityIndividual
Shares7,274
Max PriceUS$59.56
SellUS$135,52206 Mar 19
James Huffman
EntityIndividual
Shares2,277
Max PriceUS$59.52
SellUS$9,94620 Nov 18
James Huffman
EntityIndividual
Shares149
Max PriceUS$66.75
SellUS$209,21419 Nov 18
James Huffman
EntityIndividual
Shares3,112
Max PriceUS$67.23
SellUS$201,85629 Oct 18
John Adams
EntityIndividual
Shares3,000
Max PriceUS$68.00

Ownership Breakdown


Management Team

  • George Freeman (56yo)

    Chairman

    • Tenure: 11.4yrs
    • Compensation: US$5.35m
  • Preston Wigner (50yo)

    VP, General Counsel & Secretary

    • Tenure: 13.8yrs
    • Compensation: US$1.48m
  • Theodore Broome (65yo)

    Executive VP & Sales Director of Universal Leaf Tobacco Company Inc

    • Tenure: 8.4yrs
    • Compensation: US$1.50m
  • Candace Formacek (59yo)

    VP & Treasurer

    • Tenure: 7.4yrs
  • Airton Hentschke (49yo)

    COO & Senior VP

    • Tenure: 4.4yrs
    • Compensation: US$2.50m
  • Johan Kroner (51yo)

    Senior VP & CFO

    • Tenure: 1yrs
    • Compensation: US$1.09m
  • C. Claiborne (58yo)

    VP & Assistant Secretary

    • Tenure: 18.7yrs
  • Scott Bleicher (41yo)

    VP & Controller

    • Tenure: 0.3yrs

Board Members

  • Tom Johnson (69yo)

    Director

    • Tenure: 18.7yrs
    • Compensation: US$187.38k
  • Bob Sledd (66yo)

    Director

    • Tenure: 10.1yrs
    • Compensation: US$189.88k
  • Lennart Freeman (68yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$189.88k
  • Eddie Moore (71yo)

    Lead Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$208.63k
  • George Freeman (56yo)

    Chairman

    • Tenure: 11.4yrs
    • Compensation: US$5.35m
  • Thomas Tullidge

    Director

    • Tenure: 1.1yrs
    • Compensation: US$148.63k
  • Diana Cantor (61yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$187.38k
  • Mike Lawton (60yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$188.63k

Company Information

Universal Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Corporation
  • Ticker: UVV
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$1.424b
  • Shares outstanding: 24.97m
  • Website: https://www.universalcorp.com

Number of Employees


Location

  • Universal Corporation
  • 9201 Forest Hill Avenue
  • Richmond
  • Virginia
  • 23235
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UVVNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
UVVDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0LJDLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

Universal Corporation engages in the supply of leaf tobacco products worldwide. The company operates through North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental, and Special Servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:42
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.